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Baby boomers continue to redefine the meaning of retirement. We are more educated than our predecessors and want our golden years to be filled with learning new things, taking on new challenges and traveling the world. Health is also a priority among our generation and boomers will want to stay active in retirement. But as much as we all look forward to leaving the workforce, the transition can be daunting. The emotional aspect of leaving the workforce can be jarring and many new retirees have a tough time organizing, prioritizing and feeling productive with the new-found time. To get some [...]

Americans love to spend and hate to save. Such a statement may sound cliche, but statistics prove it — especially when it comes to saving for retirement. Scott Below, chair and associate professor in the Department of Finance at East Carolina University in Greenville, N.C., says workers are not entirely to blame for their reluctance to save. In the first part of a two-part interview, he says educators and the government must do a better job of helping Americans see that starting early on retirement planning can pay huge dividends later in life. America’s retirement crisis is well-documented. Why do [...]

IBM (IBM) is revamping its 401(k) program so that it pays a lump-sum payment rather than contributions throughout the year as it looks to lower retirement costs, the company confirmed on Friday.  Beginning in 2013, IBM will pay all contributions on Dec. 31 in a move that could save it millions of dollars a year in compensation on the backdrop of a still-weak economy. Armonk, N.Y.-based Big Blue last year paid $ 875 million in matching and automatic contributions. The computer maker becomes the latest company looking to lower its contribution in an effort to offset pension liabilities as soft [...]

Dear Debt Adviser, My son is drowning in debt. I’m thinking about using my retirement money to help him, but that will leave me with just the bare necessities. My son has two teenage kids, a home and a wife. He works at least 72 hours a week and still can’t get ahead. His home is just about to go into foreclosure. Should I do what I can to prevent him from losing his home?  — Annie Dear Annie, No, you should not jeopardize your retirement or your financial cushion to help your son and his family. They need more [...]

Toyota Motor Corp <7203.T> said on Friday it is offering retirement incentives to about 2,000 U.S. workers, or 10 percent of its employees in the country, in an effort to manage attrition of its aging work force. About 1,600 workers at the Japanese automaker’s Georgetown, Kentucky plant, or about a quarter of the work force there, are eligible, Toyota spokesman Mike Goss said. The rest of the eligible employees work at plants and offices throughout the United States, he said. “We’re trying to spread out the impact of the attrition over some time as opposed to the risk of them [...]

Now that the presidential election is over, health-care costs and Social Security moved up to the top of transition boomers’ economic worries. A new study released by Allianz Life Insurance Company shows that among boomers ages 55-65, rising health-care costs and the future of Social Security were their main worries heading into retirement. With retirement 10 years away for this age group, these two issues transcend political lines and have boomers worried about their future financial security. I had a chance to speak with Katie Libbe, vice president of consumer insights for Allianz Life about the impact of the election [...]

Funding your retirement with investment income has traditionally been thought of as a very conservative way to manage savings. Unfortunately, today’s low-interest-rate environment may make the goal of paying for retirement out of income alone unattainable for many people, and in any case it may not be as safe an approach as people think. Circumstances today call for a more flexible approach to funding retirement. Here are five things you should know about trying to live off investment income. 1. Living off income is not as stable as it sounds The notion is that if you only spend the income [...]

A new survey on retirement saving suggests that too many younger Americans are relying either on wishful thinking or blind faith. There is a difference between the two, though they both lead down the same path. A T. Rowe Price survey of investors between the age of 21 and 50 showed that most at least recognize the need to save for retirement. However, most are not taking adequate measures to finance a secure retirement. Saving without a plan The good news is that among the investors surveyed, 92 percent who can contribute to a 401(k) plan are doing so. However, [...]

Everyone knows you have to save for retirement, but creating and following a proper plan is easier said than done. Whether it’s establishing a savings plan too late or collecting Social Security too early, mistakes abound when it comes to adequately funding our nest eggs.   “The biggest mistake is retiring without any real plan or investment strategy,” says Nigel Green, the chief executive of the deVere Group, a financial advisory firm. “Most aspects of life require planning in order to maximise their chances of success, and retirement is no different.” Here’s a look at four common mistakes to avoid [...]

All across Europe people are waking up to an inconvenient truth: The cushy, lifelong government and employer pensions they’ve enjoyed for more than half a century are unsustainable.  Although it lagged the U.S. by several years, Europe also experienced a baby boom after World War II followed by a “baby bust” resulting in its own Generation X when the boom ended and birthrates fell.In addition, thanks to medical advances, Europeans have enjoyed increases in life expectancy similar to those seen on this side of the Atlantic, and the continent is also feeling the impact of having fewer individuals in the [...]